Voice of America
August 14, 2006

China is to increase compensation for millions of farmers relocated to make way for dams and reservoirs, in a bid to prevent rural unrest.

China is to increase compensation for millions of farmers relocated to make way for dams and reservoirs, in a bid to prevent rural unrest. The funding package is part of a new regulation that stipulates minimum levels of compensation and an annual subsidy for those displaced by water projects. The Chinese government said Sunday it would raise more than $1.6 billion a year to subsidize 22 million people, mainly peasant farmers, forced off their land by the country’s numerous water projects. The government will make annual payments of $75 each for the next 20 years to those displaced. The money will be transferred directly into the bank accounts of those affected in a bid to prevent corrupt officials from embezzling the funds, a common problem in China’s land acquisitions. City University in Hong Kong Political Science Professor Joseph Cheng says direct payments are a step towards fair compensation, but may not reduce corruption. "It is possible that corrupt local officials will behave like bullies and they will try to squeeze the money from the peasant families concerned, imposing all kinds of levies, charges, charging money for various processes, procedures and so on," he said. "So, this can remain a serious problem as long as you have very corrupt local officials."